Latest news with #ConsumerProtection
Forbes
3 days ago
- Business
- Forbes
The Fine Print Era: Rethinking Retail Finance
Consumers don't need fewer options, they need better information and independent guidance. That ... More means ditching jargon, simplifying the language, and embedding meaningful guidance at every step, not just in financial education courses, but in checkout flows, customer service chats, and everyday social content. We're entering what I call The Fine Print Era, a time when trust won't be won through slogans or slick UX, but through honesty, clarity, and respect. (Photo Illustration by) For a time, Buy Now Pay Later (BNPL) seemed like a rare win-win. Shoppers gained flexibility. Retailers saw conversion soar. Transactions became smoother, quicker and, for many, more emotionally gratifying. The promise was simple: split payments, no interest, no fuss. But that simplicity was never the full story. Now, a long-anticipated reckoning is underway. From June 2025, the UK government will formally bring BNPL providers under the watch of the Financial Conduct Authority (FCA). The new regulations require affordability checks, clearer customer information, and proper complaint channels, placing BNPL closer to traditional credit in both responsibility and scrutiny. It's a seismic moment for a sector that has, until now, existed in a kind of cultural and legal twilight too new to regulate, too embedded to ignore. BNPL uptake exploded during that vacuum. Its use rose sharply during the cost-of-living crisis, especially among younger people and families managing everyday essentials. Recent figures suggest one in eight UK adults has used BNPL in the past year, often for groceries, school shoes, or household bills. 'We're acting to protect people from potentially unmanageable debt,' said Economic Secretary to the Treasury, Bim Afolami, in the official government statement. But for many, that debt isn't a future risk, it's already here, quietly embedded in monthly repayments and missed expectations. The power of BNPL was in its seamlessness. Unlike credit cards or loans, there was no paperwork, no friction, just a few taps and the purchase was yours. The message? No fees, no interest, no problem. Except, as we've learned, there can be problems. Behind the frictionless experience sat a wall of fine print, terms and consequences often buried or worded inaccessibly. Missed payments can lead to late fees, damage credit ratings, and trigger wider financial consequences. Many didn't realise until it was too late. Now the question isn't just about regulation. It's about responsibility. Retailers must acknowledge that every payment option they offer is part of the customer experience. This includes how financial choices are presented and understood or misunderstood. For many Gen Z shoppers raised in a digital-first world, frictionless payments are the norm, budgeting is a shared conversation, and credit isn't seen through the same stigma as in the past. What one person sees as flexibility, another may experience as financial stress. Some BNPL providers, Zilch, Klarna and Clear pay amongst them, have taken many steps toward greater transparency: clearer screens, affordability nudges, easier-to-understand repayment terms. But those improvements must become the standard, not the exception. Used responsibly, BNPL can be a really helpful budgeting tool and an enabler, offering breathing space and easing larger purchases. But that kind of responsible use requires something too often missing: informed choice. That's why education must now become the next big frontier in retail finance. Consumers don't need fewer options, they need better information and independent guidance. That means ditching jargon, simplifying the language, and embedding meaningful guidance at every step, not just in financial education courses, but in checkout flows, customer service chats, and everyday social content. We're entering what I call The Fine Print Era, a time when trust won't be won through slogans or slick UX, but through honesty, clarity, and respect. Today's shoppers are more value-driven, more cautious, and more questioning. They're not just asking 'Can I afford this?' but 'What will this cost me tomorrow?' For retailers, it's time to rethink the entire financial user experience, not to remove payment options, but to design them with transparency at the core. For regulators, it's a chance to collaborate meaningfully with industry, to shape a system that protects, without paralysing innovation. And for all of us, consumers, retailers, platforms, it's a reminder that financial literacy isn't a nice-to-have. It's essential. Credit is not the enemy. But confusion might be.
Gulf Business
4 days ago
- Business
- Gulf Business
UAE Central Bank fines foreign bank $163,000 for non-compliance
The The sanction follows examinations carried out by the CBUAE, which found that the branch had failed to meet the requirements set out in the Market Conduct and Consumer Protection Regulations and Standards. Read: In a statement, the CBUAE reaffirmed its commitment to ensuring all banks and their employees comply with UAE laws and the regulatory framework established by the Central Bank. These efforts are aimed at safeguarding transparency and upholding the integrity of the banking sector and the broader financial system.
CBC
5 days ago
- Business
- CBC
Consultant who notified Manitoba ombudsman about 'grossly mismanaged' IT project sues province
A Nova Scotia man suing the Manitoba government claims his consulting contract was not renewed because he made a whistleblower complaint about the province's handling of a software project. David Morash alleges the province breached his contract and the Whistleblower Protection Act, and he's suing for general, special, aggravated and punitive damages, says a statement of claim filed at the Manitoba Court of King's Bench on July 8. He was initially contracted in 2023 by a computer consultant, on behalf of the province, to work on what the lawsuit calls a SAP — or systems, applications and products in data processing — project. The project involved updating and integrating data processing and software programs into a single, integrated system for the province, the lawsuit says. Part of Morash's contract stated that an extension would not be refused if he submitted a disclosure to the Manitoba ombudsman under the Whistleblower Protection Act regarding "gross mismanagement of a public fund or asset" by the province, the suit says. Morash made such a disclosure to the Manitoba ombudsman in August 2024, alleging wrongdoing at Manitoba's Department of Consumer Protection and Government Services, the lawsuit says. Disclosure benefited project: suit Morash alleged that the IT project was being "grossly mismanaged" by the province, "resulting in resource and financial mismanagement," the suit says. Before making the submission to the ombudsman, Morash tried to raise his concerns about the project with officials on the IT project but was told to contact the ombudsman formally, the lawsuit says. Morash learned in November that the ombudsman would investigate the disclosure. His lawsuit claims the province ultimately benefited from changes to the project prompted by his disclosure, including restructuring of the project's personnel. However, Morash's contract was not renewed in January 2025. He claims the province refused to enter into a new agreement with him only because of his submission to the ombudsman. Morash also submitted a disclosure to the Manitoba ombudsman about his expired contract, claiming it was not renewed in retaliation for his initial disclosure, the lawsuit says. The ombudsman told Morash in March that the ombudsman's office would not look into the disclosure because it lacked the authority to investigate reprisal complaints made by contractors, rather than public employees, the suit says. He says he's suffered loss of income and out-of-pocket expenses as a result of the expired contract.
Zawya
5 days ago
- Business
- Zawya
CBUAE imposes financial sanction on branch of foreign bank
The Central Bank of the UAE (CBUAE) imposed a financial sanction of AED600,000 on a branch of a foreign bank operating in the UAE, pursuant to Article (137) of the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank and Organisation of Financial Institutions and Activities, and its amendments. The financial sanction is based on the results of the findings of examinations conducted by the CBUAE, which revealed that the branch of the foreign bank had failed to comply with the Market Conduct and Consumer Protection Regulations and Standards. The CBUAE, through its supervisory and regulatory mandates, works to ensure that all Banks and their staff, abide by the UAE laws, regulations and standards adopted by the CBUAE to safeguard the transparency and integrity of the banking sector and the UAE financial system.
Yahoo
6 days ago
- Business
- Yahoo
Employees at the nation's consumer financial watchdog say it's become toothless under Trump
NEW YORK (AP) — The lights are on at the Consumer Financial Protection Bureau across the street from the White House, and employees still get paid. But in practice, the bureau has been mostly inoperable for nearly six months. CFPB employees say they essentially spend the workday sitting on their hands, forbidden from doing any work by directive from the White House. The bureau is supposed to be helping oversee the nation's banks and financial services companies and taking enforcement action in case of wrongdoing. During its 15-year existence, the CFPB has returned roughly $21 billion to consumers who were cheated by financial services companies. Instead, its main function now seems to be undoing the rulemaking and law enforcement work that was done under previous administrations, including in President Donald Trump's first term. One current employee, who spoke on condition of anonymity because the directive forbids staffers from speaking publicly about their jobs, said outsiders would be amazed at how little work is being done. Employees are reluctant even to talk to one another, out of fear that a conversation between two employees would be considered a violation of the directive. Another employee described the drastic shift in mission, from trying to protect consumers to doing nothing, as 'quite demoralizing.' To gain an understanding of what is happening inside the CFPB, The Associated Press spoke with 10 current and former employees, as well as bankers and policymakers who used to interact with the bureau nearly every day but now say their emails and voicemails go into a black hole. The agency's press office doesn't respond to emails. The CFPB took a lighter approach to its mission in Trump's first term but continued to pursue enforcement actions. Under President Joe Biden, the agency took an expansive view of its authority, targeting profitable practices by banks such as overdraft and credit card late fees, as well as investigating companies over credit reporting and medical debt. The bureau also turned a spotlight on Big Tech companies that have made inroads into financial services. For example, the CFPB ordered Apple to pay $89 million in fines and penalties for problems related to the Apple Card. Banks and the financial services industry felt the Biden CFPB acted too aggressively, particularly with a proposal to cut overdraft fees to $5 from the industry average of $27 to $35. The bureau estimated the move would save consumers roughly $5 billion a year. The proposal was overturned by Congress in April with Trump's backing. Once Trump 2.0 began, the bureau became a main target of the Department of Government Efficiency, then run by Elon Musk, who posted on X that the CFPB should 'RIP' shortly after DOGE employees became embedded at the agency. Through the bureau's acting chief, Russell Vought, the White House issued a directive that CFPB employees should ' not perform any work tasks. ' The administration then tried to lay off roughly 90% of the bureau's staff, or roughly 1,500 employees. Courts have blocked those layoffs, but there is a feeling inside the bureau that the court rulings are only a temporary reprieve. Companies that committed wrongdoing, or had open investigations, have lobbied the bureau and the White House for their punishments to be rescinded. Last month, the CFPB rescinded an agreement under which Navy Federal Credit Union agreed to pay $80 million to settle claims that it illegally charged overdraft fees to its members, who include Navy servicemen and women, and veterans. In mid-May, the agency scrapped an order for the auto financing arm of Toyota to pay customers a total of $48 million for illegally bundling products onto car buyers' auto loans. 'Companies are lining up to get out of repaying harmed customers,' said Eric Halperin, former enforcement director at the bureau, who resigned earlier this year. The Associated Press sent a list of questions to the White House regarding President Trump's vision for the CFPB. The White House did not respond. While the lack of new initiatives and the scuttling of old ones frustrate employees the most, they also note that even everyday tasks have largely fallen to the wayside. A report from the office of Sen. Elizabeth Warren, the senior Democrat on the Senate Banking Committee, found that the bureau is uploading roughly 2,200 complaints a day to its complaint database, compared to the roughly 10,500 complaints it was doing in the months before Trump took office again. Warren came up with the idea for the bureau when she was a law professor at Harvard University. The bureau did take an enforcement action on Friday. The pawn shop chain FirstCash Inc. agreed to pay $9 million to settle claims that it charged excessive interest rates on loans to armed service members, in violation of the Military Lending Act. FirstCash operates more than 1,000 stores. The bureau is going to be even further diminished in the coming months. The new budget law signed by Trump earlier this month cuts the CFPB's funding by roughly half, meaning the bureau will be forced into mass layoffs. Senate Democrats are looking for ways to restore that funding. In the meantime, employees go about their mundane routine: They continue to check their email once or twice a day to see if any of their previous work has been slated for being undone. They wait to be laid off. The only constants are the silence from bureau political appointees or the 'mini funerals' that happen every Friday, when another batch of employees who have decided to leave the bureau voluntarily have their last day. 'I don't think I'll ever work in public service again,' said one current employee, who has been looking for a new job for the past three months.
